Premier Foods delivers Hovis to US firm

PREMIER FOODS yesterday handed control of British bread maker Hovis to a US private equity firm but vowed it would lead to a new slice of life.

Published: 00:00, Tue, January 28, 2014

The classic Hovis image won over California’s Gores Group [HOVIS]

Premier, the UK’s biggest food manufacturer whose other brands include Mr Kipling, said the £30million deal would see Gores Group, led by California billionaire and chief executive Alec Gores, take a 51 per cent stake in 123-year-old Hovis. Premier will retain a 49 per cent stake.

Premier boss Gavin Darby said the deal was a “win” for Hovis, which has closed bakeries following the loss of key contracts but will now see £200million of investment over the next five years.

“Hovis has been under-invested in and under-advertised. Our joint-venture will increase TV marketing and innovations such as wraps. It will be reinvigorated,” he said.

It plans to use the proceeds from the deal to ramp up its production of Snack-Packs for snacking office workers and kids’ lunch-boxes.

“Our focus will now be on our grocery business. The Snack-Packs have been in huge demand. This is a big structural change which removes some uncertainty and is also good news for customers,” added Darby.